Alibaba, E-Mart to form joint venture in S. Korea's e-commerce market

Alibaba Group Holding Ltd. agreed to merge its South Korean operations with E-Mart Inc.’s e-commerce platform to better compete in the country’s fast-paced online retail sector.

AliExpress International and Gmarket are creating a 50-50 joint venture, according to a stock exchange filing by E-Mart which confirmed a report by Bloomberg , News.Az reports.

The companies plan to make further investments in the JV, which will own 100% of Gmarket.

The new entity could be valued at about $4 billion, people familiar with the matter told Bloomberg, asking not to be identified discussing confidential information.

E-Mart shares rose 5.5% in Seoul, giving the company a market value of $1.4 billion. Alibaba’s Hong Kong-listed stock has gained around 11% this year, valuing the firm at more than $200 billion.

The deal would help the companies face off against local rivals including Naver Corp. and Coupang Inc. This month, South Korea’s consumer confidence dropped by the most since the outbreak of Covid-19, battered by the political turmoil triggered by President Yoon Suk Yeol’s declaration of martial law and his impeachment.

News.Az